Question

I owned a used Harley for 10 months , never missed a payment , have had a credit card for a Year and a Half and never missed a payment , my score was going up and stopped at 725 for a few months. Recently I just traded in and paid off my Harley loan and purchased a new bike starting a new loan and my score dropped 49 points!? What's the deal with that and why is my score being killed

Did the new loan hit your credit reports yet? If not, then damage came from closing out an active loan. If the new loan did hit your credit reports the following happened which all hurt your scores: you got a "hard inquiry" for applying for the loan. Opening the new loan reduced the "average age of accounts". You now have a loan in which the full balance is owed on the loan (not significantly paid down like the old loan). Don't worry, this will all clear up in time as things age and you get the loan paid down. Be sure to spend a lot of time reading all that you can about credit as there is a lot to know.

Paying off the loan in itself did help. It was the new larger loan and the enquiry that caused a fall. It would have been worse if you just bought the new bike without finishing paying off the old one.

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